Franks formals rents apparel throughout the year they have


Frank's Formals rents apparel throughout the year. They have experienced non-payment by about 15% of their customers with an average loss of $400. Frank's wants to stem their losses by using an instant electronic credit check on the customer. These checks will cost them $15 on each of the 1,000 customers. The opportunity cost is 2.0% for the credit period. Should they pursue the credit check? 

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Finance Basics: Franks formals rents apparel throughout the year they have
Reference No:- TGS01085267

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